Balanced and broadly diversified portfolio with strong emphasis on stocks and low costs

Report created on Jul 22, 2025

Risk profile Info

4/7
Balanced
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Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is structured around a core of equity funds, with a 35% allocation to a growth index, 30% to a value index, 15% to a mid-cap index, and 20% to an international stock index. This composition reflects a strategic balance between growth and value investing, medium-sized companies, and international exposure. The allocation across these funds suggests a deliberate approach to capturing a wide spectrum of the equity market, aiming to benefit from both the aggressive growth potential and the stable returns of value stocks.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.96%, with a maximum drawdown of -34.41%. This performance indicates a strong growth trajectory, albeit with significant volatility, as evidenced by the steep drawdown. The days contributing to 90% of returns being concentrated in just 29.0 days highlights the portfolio's susceptibility to short-term market movements, a common characteristic of stock-heavy portfolios.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential portfolio growth, from 40.3% at the 5th percentile to 468.1% at the 67th percentile. With 985 out of 1,000 simulations showing positive returns, the projections underscore the portfolio's strong potential for growth. However, it's important to remember that these simulations are based on past performance, which is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely composed of stocks (99%), with a minimal cash holding (1%). This heavy allocation towards equities is indicative of a higher risk tolerance, as stocks tend to offer higher returns than other asset classes like bonds or cash but come with increased volatility and risk. The near absence of non-stock investments limits the portfolio's ability to hedge against stock market downturns.

Sectors Info

  • Technology
    25%
  • Financials
    16%
  • Industrials
    11%
  • Consumer Discretionary
    10%
  • Health Care
    10%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Energy
    4%
  • Utilities
    3%
  • Basic Materials
    3%
  • Real Estate
    3%

With technology (25%) and financial services (16%) making up the largest sector allocations, followed by industrials, consumer cyclical, and healthcare, the portfolio is well-positioned to capitalize on growth in these dynamic sectors. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or economic cycles affecting technology and finance industries.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

The geographic allocation is heavily weighted towards North America (81%), with modest exposure to developed Europe (8%) and emerging Asian markets (3%). This distribution suggests a focus on the stability and growth potential of the U.S. market, while still capturing some diversification benefits from international exposure. However, the limited exposure to emerging markets and other global regions may mean missing out on potential high-growth opportunities outside of developed markets.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    32%
  • Mid-cap
    30%
  • Small-cap
    1%

The portfolio's market capitalization breakdown—mega (37%), big (32%), and medium (30%)—indicates a balanced approach, leaning slightly towards larger companies known for their stability and lower volatility compared to smaller firms. The minimal allocation to small (1%) and micro (0%) caps suggests a cautious stance towards the higher risk and potential higher returns associated with smaller companies.

Risk vs. return

This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.

Click on the colored dots to explore allocations.

Considering the portfolio's current allocation, optimizing for the Efficient Frontier could enhance its risk-return profile. This means adjusting the asset allocation to achieve the best possible balance between risk and return, based on historical performance. While the current mix is well-diversified and aligned with a balanced risk profile, there may be opportunities to tweak the allocation for even better efficiency, without significantly altering the portfolio's fundamental characteristics.

Dividends Info

  • VANGUARD GROWTH INDEX FUND INSTITUTIONAL SHARES 0.30%
  • VANGUARD VALUE INDEX FUND INSTITUTIONAL SHARES 1.60%
  • VANGUARD MID-CAP INDEX FUND INSTITUTIONAL SHARES 1.10%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND INSTITUTIONAL SHARES 2.10%
  • Weighted yield (per year) 1.17%

The portfolio's dividend yield stands at an average of 1.17%, with the highest yield coming from the international stock index fund at 2.10%. While not the primary focus, these dividends contribute to the portfolio's total return, offering a modest cushion during market downturns and a source of income. The blend of growth and value funds balances the pursuit of capital appreciation with income generation.

Ongoing product costs Info

  • VANGUARD GROWTH INDEX FUND INSTITUTIONAL SHARES 0.04%
  • VANGUARD VALUE INDEX FUND INSTITUTIONAL SHARES 0.04%
  • VANGUARD MID-CAP INDEX FUND INSTITUTIONAL SHARES 0.04%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND INSTITUTIONAL SHARES 0.06%
  • Weighted costs total (per year) 0.04%

With total portfolio costs averaging 0.04%, this portfolio benefits from exceptionally low expenses, which is crucial for maximizing long-term returns. Low costs are particularly significant in a broadly diversified, stock-heavy portfolio, where the compounding effect of cost savings can be substantial over time.

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